Saudi Arabia Sets New Engineer Salary Structure
Saudi Arabia introduces a standardized salary structure for foreign engineers to ensure pay transparency and support Vision 2030 goals.
Saudi Arabia has officially implemented a new Saudi engineer salary structure for foreign workers, a move designed to bring transparency and fairness to the expatriate workforce. Regulated under Royal Decree No. A/23, this new payroll structure applies to both new and existing employment contracts across the Kingdom.
Structured Pay Based on Qualifications
The new regulations establish specific base salaries and experience allowances tailored to an engineer's level of education. This ensures that highly skilled professionals are compensated appropriately according to their academic achievements.
- Bachelor’s Degree Holders: These engineers will receive a base salary of SAR 6,900. Additionally, they are entitled to an experience allowance of SAR 345 per year, which is capped at 15 years of service, allowing for a maximum total of SAR 12,075.
- Master’s Degree Holders: The scale provides a higher pay tier for those with a Master's degree compared to bachelor's holders.
- PhD Holders: Professionals with a PhD will start at a base salary of SAR 9,775, with an annual experience allowance of SAR 490.
Cost-of-Living and Benefits
The salary structure also includes a 15% cost-of-living allowance (COLA). This component is intended to help expatriates manage the economic realities of working within the Kingdom.
A Tool for Negotiation and Vision 2030
The Ministry of Human Resources has introduced this benchmark to assist employers and recruitment agencies in standardizing compensation. By providing a clear framework, the government aims to prevent underpayment and help foreign workers—including many Indian nationals—negotiate more effective contracts.
While the decree originates from 1432 AH (approximately 2011), its application serves as a vital mechanism to support the Saudi Vision 2030 development plan. By attracting and retaining global expertise through fair pay, the Kingdom aims to stabilize its labor market and ensure the success of its massive infrastructure and development projects.